Alibaba (NYSE:BABA) stock is enjoying a strong market day on new reports about its entrance into the artificial intelligence (AI) game. According to the Chinese news outlet Pandaily, a blogger has discovered a leaked version of Alibaba’s chatbot inside its Tmall Genie smart speaker.
This isn’t exactly the first hint of an artificial intelligence project from the Chinese e-commerce giant. Indeed, in February, it was announced that Alibaba was working on its own AI chatbot, akin to OpenAI’s now-famous ChatGPT.
In fact, according to some speculation, Alibaba is planning on merging its burgeoning AI tool with its popular workplace communication app, DingTalk.
While today’s report isn’t particularly tangible, it’s still a clear indicator that ChatGPT’s breakout success is sure to spawn competitors. BABA stock is up about 4% on the news.
What else do you need to know about Alibaba and AI stocks lately?
BABA Stock Climbs on Growing AI Presence
Alibaba has had a busy few months. Alongside its continued deep dive into AI, Alibaba is making some unique business decisions. Last month, Alibaba announced it would split its $220 billion company into six separate units, representing its e-commerce, media, and cloud businesses. Once separated, each sector of the company may pursue its own initial public offering (IPO).
“At 24 years of age, Alibaba is welcoming a new opportunity for growth. The market is the best litmus test, and each business group and company can pursue independent fundraising and IPOs when they are ready,” said Alibaba Chief Executive Daniel Zhang.
That said, Alibaba’s AI venture is clearly the headline grabber lately.
Indeed, according to reports, Alibaba has begun integrating its generative AI chatbots into its smart speakers. The Tmall Genie is Alibaba’s take on devices like Alphabet’s (NASDAQ:GOOG, NASDAQ:GOOGL) Google Home or Amazon’s (NASDAQ:AMZN) Alexa. In this case, Tmall Genie is home to “AliGenie.”
According to early reports, out of 15 questions, ten of the AI’s responses were considered better than its competitors.
Interestingly, Alibaba isn’t the only major Chinese tech company working on a ChatGPT alternative. E-commerce rivals Baidu (NASDAQ:BIDU) and JD.com (NASDAQ:JD) have each launched or announced their take on the AI sensation.
On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
